EDITOR'S CHOICE -- SCOTT SUTTELL

Hey, fracking millionaires -- have they got advice for you

Blog Entry: February 28, 2013 12:33 PM | Author: SCOTT SUTTELL

New drilling and extraction technologies such as hydraulic fracturing “are giving birth to a new generation of overnight millionaires,” Dow Jones says, and that opens up opportunities for financial advisers such as Jeffrey Malbasa in Beachwood.

Advisers being sought out to help landowners manage their cash windfalls have “had to learn the latest drilling terms, try to grasp the promise of energy formations like the Marcellus and Utica shales and help clients assemble teams that could include attorneys who understand the ins and outs of mineral rights and gas leases,” the news service notes.

Among their duties: “cautioning stunned or eager clients on the dangers of spending too quickly or before promised royalties materialize.”

For instance, in East Liverpool, Ohio, which calls itself "The Pottery Capital of the Nation," several employees of a small mug manufacturer are going to be millionaires thanks to their land, Mr. Malbasa tells Dow Jones.

"How do you educate a population around how to treat this money who've never had this much money before and never expected to have it?" Mr. Malbasa asked.

Financial advisers must help these investors weigh instant gratification against longer-term needs.

"The biggest battle is most people spend too much and hand out too much to other people," Mr. Malbasa notes.

The first step “is to lay out assets and liabilities so the landowners realize what's achievable and what's not,” he says. Mr. Malbasa tells Dow Jones that he makes sure money that will be needed for taxes is put into liquid investments, and will recommend accountants and attorneys as well.

In medicine, “having a tattoo does not impede a person's chance at landing a position, but rules about covering them tend to be more stringent,” Forbes.com says.

The story notes the Cleveland Clinic has a typical policy: “Tattoos must be covered during working hours to ensure a consistent professional appearance while working.”

You also can follow me on Twitter for more news about business and Northeast Ohio. Or to tweet me with suggestions for tattoos.

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